UPDATE: The Nikkei staged an impressive 155 point vertical ramp (on low volumes) back to USDJPY as soon as Abe stopped speaking running stops to late-day US session…
With Japanese stocks down 13.6% from their 12/31 highs, the big guns just hit the tape to try to save the day:
- *ABE:BOJ WILL MAKE APPROPRIATE DECISION ON EXIT STRATEGY
- *ABE: NOT EASY TO CHANGE ‘DEFLATIONARY MIND’
- *KURODA: BOJ CAN CONDUCT APPROPRIATE EXIT POLICY AS NEEDED
- *KURODA: BOJ EASING HAS HAD INTENDED IMPACT SO FAR
Following Amari’s earlier “markets are over-reacting” jawboning, so far this is having little to no effect. USDJPY is actually fading back lower and perhaps stunningly Japanese 20Y bond yields and stocks are back at the same levels seen in May 2013 (1 month after the BoJ unveiled QQE). Time for some Depends Mr. Abe.
Which leaves the Nikkei -13.6% from 2013 closing highs..